I couldn't put it off any longer so on Saturday I bought four new tires. My last set did me well for a good number of years, so the replacements I chose were exactly the same.

Eleven Hundred Dollars.

I must admit that I almost had a heart attack right there in the Les Schwab store. I remember, not too long ago, when a great tire could be had for about a hundred bucks. Not so anymore.

It seems that prices are rising dramatically, while at the same time the things I read point to average wages falling. It's a bad situation, and I fear that with all the spending lunacy in Washington D.C. higher pricing is likely to continue.

Let us hope that the economy continues to improve, and that the pace of improvement quickens. In the meantime, I must say, in comparison with the price of tires anyway, professional domination seems like a bargain!

Posted by Milliscent at 7:52 PM | Permalink | Comments (6)

Today it was announced by the Boeing Company that the second Dreamliner production line would be built in South Carolina, not Washington State. Obviously this is a harsh emotional blow to our area.

As readers of this blog know, I am not a fan of government. This time though, in this case, government is not to blame. Numerous studies have clearly shown that Washington State has one of the best business climates in the nation, and on top of that Boeing receives very special treatment from our state government. The company is pampered with incentive after incentive. Local governments, notably the City of Everett and Snohomish County have in the past caused Boeing grief, but certainly not enough to effect this decision.

Clearly Boeing's decision to build the second line elsewhere is a result of an out of control machinists union. Last year's strike that shut down Dreamliner production is beyond any doubt the straw that broke Boeing's back.

There can be no doubt that machinist union members read this blog and come visit me. Please know that I share your extreme disappointment with Boeing's decision, please know that I sympathize with you.

That said, I believe that those of us living within the Puget Sound region need to be honest about the union and the disastrous effects its actions have upon our region. Unions exist for legitimate and important reasons, unions safeguard American labor. The machinists union has gone well beyond that though. Unreasonable demands, needless strikes, lobbying for industry crippling laws. These things are not legitimate functions of unionism; the machinists union's embrace of these things has driven an industrial giant from our State of Washington.

My friends in the machinists union, I share your sorrow on this day. I also however call upon you to take a good look at your union leadership and its demands on Boeing, its demands on our state's elected officials. If you take an honest look, you will not like what you see. I hope that you will replace those leaders with new men and women, men and women who are interested in protecting jobs more than their own personal glory.

Jobs come from making demands that a company can actually meet. Jobs come from striking only when it is the only reasonable option available to workers. Jobs come from not pressuring legislators to pass laws that would cripple industry. Jobs do not come from a union leadership that is completely out of touch with economic and legal reality.

Today, I share your pain. Tomorrow let us use our dollars, our efforts, and our votes to ensure that the Puget Sound economy of the future is the very brightest in the world. Continuing economic greatness is ours to loose and if it is lost we have only ourselves to blame.

Posted by Milliscent at 5:41 PM | Permalink | Comments (26)

As we face these very trying economic times I have been striving to remember that while the great depression was horrible for most people, others were able to amass great wealth later by taking risks and investing during it.

For example, I am reminded that the largest business in the small town I used to live in, indeed one of the largest businesses of it's kind in our state, was started at the very height of the great depression.

Economic hard times can also be times of opportunity. I think of a hypothetical fellow who may have always wanted to start his own business, but could never take the risk. If he is unemployed now, certainly there could be no better time for him to make the leap. It is, I guess, all in how you look at it.

I am a fairly large shareholder in a very tiny bank. It's done well through the years, and has thus far managed to preserve itself through these hard times. I did though receive a letter from the bank, a letter asking me to purchase a number of shares in a new offering. Shares to be sold both to keep the bank operating, and to fund opportunities in this time when so many banks have faltered or folded.

I suppose that response to the letter will vary precisely based upon how each individual views things. Many will decline to invest further because of fear over the current state of the economy. Others will invest because of confidence that things always get better, and moves made during hard times can pay off very well when good times return.

I hold the second view. I'm buying now. I'm investing now in my future, in the strength of the American economy. Tomorrow will be a brighter day and the investment I make now will reap rewards when that brighter day comes. Those who were more fearful may sleep just a little bit better tonight, but are giving up much in the long term.

Our economy can't grow in a state of fear, but just as importantly, fear can paralyze us as individuals and prevent us from seeing the opportunities that present themselves to us. Start that company you've always dreamed of, make that investment, get the economy rolling again for yourself, and the economy of the world will follow.

Confidence in the future will grow our economy, and if there is one thing history has taught us it is that the American economy is an amazingly resilient machine. We will look back upon these times from economic heights previously only imagined. Each and every one of us, together, will make it happen.

Posted by Milliscent at 5:06 PM | Permalink | Comments (2)

The financial markets have certainly provided us with an interesting ride recently. While I generally ignore the financial news, preferring to take a longer-term approach to investing, I must admit that this is big news. Big enough news to justify some commentary here.

My thought has to be: Don’t Panic.

The markets will recover; our larger economy will in the end be strong.

Individuals loose tremendous sums of money through panic. They loose tremendous sums of money through following the herd. Much less frequent are those individuals who make tremendous sums of money by doing the opposite of the majority, by being contrarians. That is what we must seek to do. Buy while things are low, certainly don’t sell, never panic. That is the key to building long term wealth.

As for me, this week, I bought stock. It is a perfect time.

If we don’t allow ourselves to get caught up in the panic, if we take a long term approach to our investing we will get through these temporary financial market problems without issue. In fact, if we can do the above, we stand an exceptionally good chance of making great profits in our portfolio, and that is certainly what it’s all about.

Posted by Milliscent at 10:59 AM | Permalink | Comments (2)

Yesterday the state Economic and Revenue Forecast Council released its June quarterly forecast. This was the first forecast made under the direction of Dr. Steve Lerch, Interim Director of the Council.

Our state government seems to be in good shape, revenue is forecasted to decrease from projections by about 223.9 million dollars, but the ending fund balance plus reserves are at about 801.4 million dollars.

Our economy is expected to grow over the 2007 through 2009 cycle at slightly less than 3% per year. While not tremendous numbers, 3% is certainly a reasonable level of growth, and this shows that our state economy remains fundamentally strong despite a more dismal outlook nationwide.

Our economy is forecast to do even better in the 2009 through 2011 cycle with about a 4% growth rate per year projected.

The forecast projects that the housing market will rebound in the third quarter of this year and foreclosures in Washington remain substantially lower than the national average. Population growth is expected to continue driving up the demand for housing.

Beyond Washington’s borders, the national economy is generally weak; our unique mix of industries and trade is protecting us from the nationwide downturn.

Washington consumers have started saving more of their money, which is fundamentally important to future economic growth.

There is no recession projected for Washington State between now and 2012.

Posted by Milliscent at 5:18 PM | Permalink | Comments (0)